Small-scale miners are set to benefit from a groundbreaking initiative after the Ministry of Minerals signed an agreement with CRDB Bank to provide loans for mining equipment, processing plants, and operational costs.
Speaking during a collaboration meeting between CRDB Bank and the Minerals Commission, Minister of Minerals, Mavunde, said the program will enable licensed small-scale miners to access financing to increase production and boost their contribution to government revenue.
One of the first beneficiaries is the SAZA GOLD FAMILY group in Songwe Region, which is set to receive a TZS 30 billion loan from CRDB Bank.
The funding will allow the group to acquire a gold processing plant and modern mining equipment.
Minister Mavunde explained that the group was granted a mining license previously held by BAFEX, following a directive from President Samia Suluhu Hassan during a visit to Saza.
“This is part of our strategy to empower small-scale miners, ensuring they have the tools and support to grow their businesses and contribute more to the economy,” he said.
The Minister called on CRDB Bank and the Minerals Commission to finalize the Memorandum of Understanding (MoU) by next Wednesday, ensuring loans are disbursed promptly.
He emphasized that miners currently contribute about 40 percent of the sector’s revenue, and access to financing will further increase production and government collections.
Philipo Mulugo, Member of Parliament for Songwe, praised Minister Mavunde for championing the interests of small-scale miners.
“He has ensured miners get licenses, access to loans, and solutions to operational challenges,” Mulugo said.
Minister Mavunde also urged financial institutions to trust miners, noting that many have the capacity to manage significant capital.
He encouraged banks to create a favorable lending environment that would benefit both miners and the financial sector.
Deputy Minister of Minerals, Dr. Steven Kiruswa, and Ministry Secretary Engineer Yahya Samamba stressed the importance of financial literacy and production tracking to ensure successful loan disbursement.
Simon Ndaki, Chairperson of SAZA GOLD FAMILY, expressed gratitude to the government for facilitating the loan process.
“With modern equipment and this support, we are confident our production and contribution to government revenue will grow significantly,” he said.
The initiative is expected to transform small-scale mining in Tanzania, providing miners with the capital needed to operate professionally while contributing more to the national economy.